Korean power giant Kepco appeals Bylong coal mine rejection
The thermal coal project in the winemaking Mudgee region was knocked back in September by the state’s IPC.
Korean power giant Kepco has lodged an appeal over its rejected Bylong coal mine in NSW, arguing the Independent Planning Commission misinterpreted its legal obligations in citing aspirational climate change targets for blocking the project.
Nearly nine years after Kepco first acquired exploration permits, the thermal coal project in the winemaking Mudgee region was knocked back in September by the state’s IPC.
Development consent was refused in part because of the coal mine’s projected greenhouse gas emissions, arguing Kepco had failed to minimise its emissions “to the greater extent practicable” as required under NSW’s mining state environmental planning policy.
Kepco has filed an appeal in the Land and Environment Court arguing both Australia’s commitment to the Paris climate agreement and the NSW government’s goal of net zero emissions by 2050 did not apply to the government’s policy and should not be used to judge the environmental determination of its coal project.
It cited a Land and Environment Court decision in June 2018 which dismissed Australia’s ratification of the Paris Agreement as a reason for challenging the emissions profile of Peabody Energy’s Wilpinjong mine, also located near Mudgee.
Kepco is seeking a court order ruling the IPC’s refusal as invalid and will seek a re-determination of the project. It argued it had complied with every regulatory expectation for the coal mine.
“The project was twice recommended for approval by the Department of Planning and has the support of the local council and the vast majority of local residents. It has been subject to countless environmental reviews and assessments and been deemed approvable by each one,” a Kepco Bylong Australia spokesperson said. “We thank our supporters who have been patiently waiting through this prolonged and inconsistent approval process.”
The controversial mine - which plans to extract 120 million tonnes of coal over 25 years for export markets - was referred to the IPC in October 2018 by the state’s Department of Planning, Industry and Environment after significant community opposition.
However, the NSW government has taken a harder line in recent months over mining and energy projects being delayed or rejected due to climate concerns.
The operations and processes of the IPC are currently under review by the Productivity Commissioner while NSW Deputy Premier and Resources Minister John Barilaro flagged a plan in October to introduce laws putting an end to international greenhouse gas emissions being used as a reason to prevent the state’s mines being approved.
The legislation would mean Scope 3 emissions, which cover emissions outside of Australia from customers using commodities including coal, would not be taken into account for local mining approvals.
The move was sparked after the Rocky Hill coking coal mine planned for NSW’s Hunter Valley was rejected in February when the state’s Land and Environment Court cited the “dire consequences” of the coal project on global pollution levels.
The judgment - which shocked the nation’s resource owners - marked the first time an Australian court has rejected an approval for a coal mine due to its impact on global warming.
Activist group Lock The Gate said on Wednesday it was extremely disappointed in Kepco’s decision to pursue a judicial review.
“At a time when so much of NSW is suffering from severe drought and unprecedented bushfires, it is madness that this fertile agricultural country remains at risk from mining,” Lock The Gate Alliance spokesperson Georgina Woods said.
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